Here's Why Apple Needs Wal-Mart More Than It Needs Target

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Apple is widely expected to launch more stores-within-stores in partnership with both Wal-Mart and Target, but one analyst argues that Wal-Mart will ultimately be the more important partner for Apple’s sales going forward.In a research note, Piper Jaffray’s Gene Munster explains that Wal-Mart has 3,800 stores nationwide while Target has just 1,700 stores.

More importantly, Munster says Wal-Mart has more of a presence in rural areas than Target, which would help Apple broaden its reach to U.S. consumers.

“While Target stores will help expand distribution points, we believe from a geographic standpoint that there is significant overlap in markets with both Target, Best Buy, and Apple retail locations,” Munster writes.

At the moment, Apple only has one store-within-a-store in Wal-Mart and two in Target, though Munster notes Apple is expected to add 23 more Target locations this year.

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